• New York : 07:22 PM
    • London : 12:22 AM
    • Tokyo : 09:22 AM
    • Sydney : 11:22 AM
    • Beijing : 08:22 AM
HOW DO YOU READ A QUOTE

Forex is quoted in pairs since we are always comparing one currency to the other. For example, the EUR/USD is at 1.3036 – this represents how much 1 EUR is in USD (US Dollars).

BASE CURRENCY AND COUNTER CURRENCY

In a currency pair, there are 2 quoted currencies, the first one is the “base currency” and the second one is the “counter currency.” Once you buy or sell a pair, you are doing an operation on the base currency. Let’s explain it further: you sell EUR/USD at 1.3036, if the EUR/USD goes down that means the Euro is getting weaker and the US Dollar is getting stronger. Say the EUR/USD goes to 1.2522, in that case, you would have made a profit. If it goes up to 1.3522, you would have suffered a loss. You just need to remember that when a currency pair is sold, down is good, and when the pair is bought, up is good.

BUT I DON’T HAVE ANY EUROS. HOW CAN I SELL THEM? With Forex Age Invest MENA’s trading station you can buy or sell any currency pair that is available to you on the platform, like the EUR/USD, even if you don’t have Euros. How can you do that? Well, it’s really simple, by buying EUR/USD on the station you are actually borrowing Euros – that’s what we call trading on margin. Trading on margin is offering margin accounts that allow traders to buy/sell currency pairs.

WHAT IS A LOT?

A lot is the smallest trade size available. Forex Age Invest MENA accounts have a standard lot size of 1,000 units of currency. Account holders can however place trades of different lot sizes (incremental of 1,000 units, e.g. 2,000, 5,000, 10,000, 123,000 and so on).

WHAT IS A PIP?

A pip is a trading unit you calculate profits or losses in. Most currency pairs, except japanese yen pairs, are quoted to 4 decimal places. This fourth spot after the decimal point (at one 100th of a cent) is typically what one looks at to count “pips”. Every point that place in the quote moves is 1 pip of movement. For example, if the EUR/USD goes from 1.3036 to 1.3040, we say the pair went up 4 pips. The value of a pip can vary according to the size of each trade you place and to the currency you traded with. A pip in a standard account in EUR/USD is worth $0.10 per lot. If you were trading 4 lots, you would have 4 pips of profit or loss per pip the EUR/USD moves, and, hence, $0.40 of profit or loss.

WHAT IS LEVERAGE?

As previously stated, all trades are completed using borrowed funds – which enable you of benefiting of leverage. Leverage of 200:1 allows you to trade with $10,000 in the market by setting aside only $75 as a security deposit. So you can benefit from the slightest movements in the market and controlling more funds than you have in your account. Leverage is a double-edged sword; it can benefit you in increasing your profits but it also can increase your losses – that’s why you should trade responsibly. Forex Age Invest’s margin watcher feature will make sure that you never lose more money than what is in your account, but you should always trade with caution with leverage.